If you are absolutely new to the stock market and looking forward to opening your first demat account to invest in a stock or mutual fund, this post will guide you step-by-step. As you read this post, you will gain clarity on every aspect of a demat account and can confidently open one.
What is a Demat Account?
A Demat Account dates back to 1996 when it was introduced in India for the first time. Before that, investing in the Indian Stock Market involved dealing with physical certificates. Besides, the process of buying and selling was slow.
A Demat account is used to store your financial securities and related documents in an electronic form. By financial securities, I mean Stocks, Mutual Funds, Bonds, and ETFs. One reason behind people's deep interest in the stock market is that investments can be more profitable than fixed deposits. With this, the possibility of damaging or losing physical certificates relating to investing has been eliminated forever. Further, buying and selling got way faster than before, eventually leading to high market liquidity.
How to open a Demat account Online?
Select a Reliable Broker:
It starts with knowing your requirements and features to look for in a broker. You must try to select a reliable broker to have the best Demat Account experience. I know it's not easy to do it when you are completely new in the stock market. Every broker is associated with a depository participant to help investors participate in the securities market.
National Securities Depository Limited and Central Depository Services Limited are the two popular depository participants in the Indian Stock Exchange. To start off, you can answer a few questions for clarity, such as if you want a Demat account for short-term or long-term investments.
Next, you need to be clear about the features you will need for the accuracy of trading and investing. Another question that needs to be addressed is the Charges. You must look for an affordable broker to open a Demat account regarding account opening charges and AMC. Most importantly, you can have multiple Demat accounts.
Start the Account Opening Process:
After you find a reliable broker, you can start the account opening process by going to its official website. Once you get to the broker's official, you will see an option such as Sign up or Get Started.
Email and Mobile Verification:
Almost all brokers' Demat account processes start with Email and mobile verification. You must specify the email ID and mobile number you want to register with the broker for your Demat Account.
After you enter the details, it will send you an email verification link to click on and verify. For your mobile number, an OTP will be sent to your number, which you must enter on the broker's page to confirm.
Fill in the Application Form:
Once done with Email and mobile number verification, you can proceed with filling in the application form. You must provide details such as name, address, occupation, annual income, date of birth, and experience.
Link your Bank account:
Linking your savings account is crucial since you will need it while funding your Trading account and withdrawing money from the Trading account. You will need to provide your bank account number and complete the verification.
Submit Required Documents:
Next, you must submit proof of identity, date of birth, and address. You can submit a soft copy of your PAN and Aadhaar cards.
Complete KYC Process:
The KYC process is crucial for all online transactions these days, and it holds true for a Demat account opening process, too. Once you start the KYC process, it's self-explanatory. For most brokers, the KYC process can be done using DigiLocker.
Complete IPV Process:
IPV or In-Person Verification is another crucial step in the demat account opening process and is mandatory for all brokers. In this step, you have to turn on your device camera and take your picture holding a paper with the PIN assigned to you. In case no PIN is assigned to you, you only have to take your photo or record a video of yours as specified in the IPV section.
eSign the Application and Submit:
eSigning and submitting the Application form is the last step in opening the Demat account. Once you start the eSigning step, you will be redirected to the CDSL website, wherein you will need to enter your Aadhaar number and complete your Aadhaar OTP verification. After that, you can review your Application and submit it.
Once you submit your Application, you will need to wait 24 to 48 hours for the broker's review team to review your Application. If everything is fine with the Application, you will receive your login credentials to your registered email account within 24 to 48 hours.
Demat account charges
Before opening a Demat account, it's essential for one to bear in mind that there are some charges associated with a Demat account such as Account Opening Charges and Annual Maintenance Charges. Besides, there are brokerage charges. Interestingly, the charges differ from broker to broker.
While some brokers charge an Account Opening fee, some brokers don't. Some brokers don't even charge any AMC. While most brokers keep Equity Delivery brokerage free, some brokers charge brokerage fees on Equity Delivery. You always have to be careful when choosing a broker and select one only after a good comparison.
How do you open a Demat Account with:
Zerodha:
Zerodha charges an account opening fee of ₹200 and an AMC of ₹300. Here are the steps you need to follow to open a Demat account with Zerodha:
- You must go to the Zerodha's official website
- Next, you can click on the signup button
- After that, you must enter your mobile number and complete OTP verification
- Enter your Email ID and complete the email verification
- Next, you will need to enter your PAN card Number and Date of Birth.
- Click on Accept and Continue
- After that, you must pay the account opening fee through UPI or Net banking
- Next, you will need to log in to your DigiLocker account to give Zerodha access to your Aadhaar details
- Link your Bank account
- Start with the IPV (In-Person Verification) process
- Write the PIN on a piece of paper and take a picture of yours holding the piece of paper
- Next, upload the required documents (PAN, Aadhaar, canceled cheque, signature photo proof and Income proof)
- After that, you will need to eSign your Application through Aadhaar OTP verification
- Next, you can review your Application and click on Submit
Angel One:
Angel One has zero account opening charge but charges an AMC of ₹240. You can follow these steps to open a Demat account with Angel One:
- First, go to the official website of Angel One
- Next, you will need to click on the Sign Up button to start the process
- After that, you must enter your mobile number and complete OTP verification for your mobile number
- Next, you need to fill in the online application form, providing details such as name, mobile number, and city
- Once done with filling out the online application form, you will need to upload the required documents (PAN and Aadhaar)
- After that, you can start the IPV process and complete it
- Lastly, you will need to eSign your application form through Aadhaar OTP verification on the CDSL website and submit your Application
Upstox:
Upstox doesn't charge any account opening fee and AMC. The steps involved in Upstox Demat Account opening are as follows:
- You can start by visiting Upstox's official website
- Next, enter your mobile number and click on the Signup button
- After that, you have to create an account using your Email ID and your desired password
- Once the account is created, you can upload the required documents and select the pricing plan
- Next, you have to complete your KYC and IPV process
- Lastly, you can eSign your Application and submit
SBI Securities:
SBI Securities charges ₹850 for Trading Account Opening Charges and an AMC of ₹350. Here are the steps you need to follow to open a demat account with SBI Securities:
- First, you can visit the SBI Securities official website or download its official app from the Play Store or App Store
- Next, you need to click on Open a Demat A/C
- After that, you need to enter your Email ID and mobile number that you want to register with the SBI Securities Demat account
- Verify Mobile number via OTP and Email account via the verification link
- In the next step, you have to enter your PAN Card details and verify it
- After that, you must verify your Identify details through DigiLocker or by uploading the Aadhaar card
- Once done with Identity verification, you will need to verify Personal Details and Nominee Details
- Next, you will need to link your Bank account by adding the Bank details
- After that, you can select a desired scheme
- In the next step, you will need to complete the IPV process and submit documents such as PAN, Cancelled cheque, and Signature
- In the last step, you will need to eSign your Application and submit it.
HDFC Securities:
HDFC Securities charges a Trading Account Opening fee of ₹999 and a Demat AMC of ₹750. Here are the steps you need to follow to open a demat account with HDFC Securities:
- You can start by visiting the HDFC Securities website, or you may download the HDFC Securities mobile app
- Next, you need to click on the Signup button, enter your mobile number, and complete the OTP verification
- After that, you will need to provide some personal details, including your bank details
- Select your trading plan
- In the next step, you will need to complete your In-Person Verification (IPV) process
- Next, you must upload your KYC documents.
- In the last step, you will need to E-sign your Application through Aadhaar card OTP verification
ICICI Direct:
Account opening is free in ICICI Direct, but the platform charges an AMC of ₹300. To open a demat account with ICICI Direct, you need to follow these steps:
- First, you need to go to the ICICI Direct website
- Click on Open an Account, enter your mobile number, and complete the OTP verification
- Next, provide personal details
- After that, you must provide your Email ID and verify it using the Email link
- In the next step, you will need to provide your PAN Number and Data of Birth
- Next, you can complete the KYC process
- After KYC, you will need to link your Bank account and complete DigiLocker verification
- In the next step, you will need to complete the IPV process for identity verification
- After IPV, you need to select a Brokerage plan
- Next, upload the required documents, eSign your Application, and submit
Groww
Groww is a broker that doesn't charge any account opening or Annual Demat Account Maintenance fee. That way, you can have a free Demat account. To open an account with Groww, you need to follow these essential steps:
- To begin, you can visit the Groww website or download the Groww app
- Next, you will need to register your mobile number and email ID for the Groww account
- After that, you will need to have your mobile number and Email verified through OTP and email link
- In the next step, you have to enter your PAN No. to confirm your identity
- Next, you will need to enter your bank details to link your bank account to your demat account
- Once done with linking the bank account, you can click on Complete Setup under the Stocks tab
- You must read and tick the agree button
- Next, you have to click on Open Stocks account
- After that, you will need to complete the KYC process
- Besides, you can complete the IPV process by holding a paper with your signature on it
- After completing the IPV process, you will need to E-sign your Application through your Aadhaar card OTP
For Minor:
You can even have a Demat account open for minors now. However, there has to be a legal guardian with a Zerodha account to open a minor account. You can open one with Zerodha, and here are the steps:
- To begin, you can visit the Zerodha's signup page
- Next, you have to log in to Zerodha using your Kite credentials
- After that, you must enter the PAN and date of birth of the minor and click on Continue
- In this step, you will need to click on Continue to DigiLocker to share the Aadhaar details of the child
- Next, you must complete the OTP verification to give DigiLocker access to Zerodha
- Now, you will need to specify the parent's name and one's relationship with the minor
- The next you have to enter are the bank details of the minor
- After that, it's time to complete the IPV or the In-Person Verification for the minor
- In this step, you will need to upload the required documents and E-Sign the Application using Gurdidan's Aadhaar OTP verification
Axis Bank:
AxisDirect charges an account opening fee of ₹900 and a Demat AMC of ₹650. Here are the steps you need to follow to open a Demat account with AxisDirect:
- To begin the account opening process, you must visit the AxisDirect website
- Next, you need to click on OPEN AN ACCOUNT and enter your phone number and email address
- After that, you need to have your mobile number and email address verified through OTP and an email verification link
- In this step, you have to enter your PAN card number and date of birth
- Next, you must fill in the required personal details and bank details
- After you have linked your bank account, you have to pay the account opening charges
- Next, upload the required documents such as an Aadhaar card, cancelled cheque, passport-size photo
- Lastly, you have to E-sign the Application using your Aadhaar card OTP and submit
Dhan:
Dhan charges ₹0 account opening charges and AMC. You can open a Demat account with Dhan by following these steps:
- You can start by going to the Dhan's official website or downloading the Dhan's mobile app
- After that, you must click on Open Demat Account and enter your mobile number and email address
- Next, you will need to complete mobile number OTP verification and Email address verification
- In this step, you will need to create a 6-digit PIN code for your Dhan account
- After that, you need to specify PAN card details and upload a live selfie and signature picture for KYC
- Next, you have to link your bank account
- In the last step, you will need to E-sign your Application using Aadhaar OTP verification and submit it
Paytm Money:
Paytm Money charges ₹200 for account opening and ₹300 for AMC. To open a Demat account with Paytm Money, you need to follow these steps:
- To begin, you can go to the Paytm Money website or download the Paytm Money app
- Next, you can log in using your existing Paytm credentials or create a new Paytm account using your Email ID or Mobile number
- After that, verify your mobile number through OTP
- Next, you can click on ‘I want faster access.'
- In this step, you can submit the required documents for Paytm Money KYC verification
- Next, you have to share your trading experience and trading preference
- After that, you can E-sign your application form through Aadhaar OTP on the CDSL website
NRI:
NRIs can open a Demat account with Zerodha with an NRI Bank Account with any of these banks:
- HDFC Bank
- IndusInd Bank
- IDFC First Bank
- Axis Bank
Zerodha charges ₹500 for NRI Account Opening and ₹300 for AMC. However, you can't open an NRI account with Zerodha online. The process is entirely offline.
To open an NRI account with Zerodha, you have to visit Zerodha's official website and go to the ‘Account' section
- After that, you can go to the Download & Resources section
- Next, you can go to the Application Forms section
- You can then download the Zerodha NRI account opening form in PDF format
- Next, you must open an NRI account with any of the banks mentioned above and get PIS permission from the RBI
- Besides, you need to scan copies of the FEMA declaration, PAN card, Passport size photograph, FATCA Declaration form, and a cancelled cheque from the NRE or NRO savings account
- Finally, you can send all the documents along with your NRI account application form to Zerodha NRI desk through Email for verification
- The process may take from 3 to 5 working days
Canara Bank:
Canara Bank charges ₹500 for AMC. However, it doesn't charge any fee for account opening. Here are the steps you need to follow:
- To begin, you can log in to your Canara bank account and select Demat Account
- Next, you will need to select Demat from the dropdown menu
- When you do this, it should display no active Demat account if you don't have any Demat account with Canara bank
- Next, you have to click on Continue to open a new demat account with Canara bank
- Once you do this, your credentials will be displayed on the screen
- And as you click on the process, it will redirect you to the NSDL website
- After that, you will need to fill in the NSDL Insta Demat account form with details of your name, Email, and phone number
- After that you need to complete the OTP verification and submit the form
Yono SBI:
You can open a demat account with the SBI YONO app. The charges are just the same as SBICAP Securities. Here are the steps you need to follow:
- You can begin by downloading the YONO app
- Next, you can log in using your SBI credentials
- After that, you can navigate to the Investment section and click on Open Demat & Trading Account
- It will redirect you to the SBICAP Securities website
- In the next step, you will need to enter some personal details and Confirm
Kotak Securities:
Kotak Securities charges ₹99 for account opening and ₹600 for AMC. To open a Demat account with Kotak Securities, you need to follow these essential steps:
- You can start by going to the Kotak Securities official website
- Next, you can click on Open Demat Account
- After that, you have to enter your mobile number and complete the mobile OTP verification
- Next, you need to enter your trading experience in terms of years
- In the next step, you have to enter your PAN card Number and Date of Birth
- In this step, you have to enter your Aadhaar details by giving the broker access to your DigiLocker portal
- After that, you will need to be a Nominee
- Next, you have to enter an Email ID and verify it using the email link
- In this step, you will need to enter some personal details such as marital status, Occupation, and Yearly Income
- In the next step, you have to link your Bank account
- Once done with linking your bank account, you can start with submitting your documents comprising your Selfie, Signature, PAN, Bank Account Statement, Cancelled cheque
- After that, you have to select a Kotak Securities plan
- In the last step, you have to E-Sign your Application using your Aadhaar card OTP and submit
PNB:
You can open a Demat account with PNB, but interestingly, PNB doesn't have a trading platform. Hence, to have a 3-in-1 Demat account with PNB, you will need to open a Trading account with any of these brokers:
- Geojit
- SMC Online
- IDBI Direct
- Aditya Birla Capital
When it comes to charges, PNB charges ₹250 for AMC. The Demat account process will be straightforward if you already have a PNB account and a Trading account with any of the above Trading platforms. Here are the steps to follow:
- To start, you can log into the PNB net banking service
- Next, from the menu, you have to click on the option Demat Account Linking Online
- After that, you have to select the PNB Account number
- In this step, you have to choose the broker with which you have a trading account
- Next, you must select the Demat Account BOID and click on Continue
- Complete the OTP verification
Bank of Baroda:
Bank of Baroda lets you open a Demat account for free. However, the platform charges ₹200 from the second year onward as AMC. Here are the steps to follow to open a Demat account with the Bank of Baroda:
- First, you need to go to the Bank of Baroda website
- Next, you have to go to the Demat Services section
- After that, you have to fill in the online application form
- You will need to enter your PAN card number, bank account details, and other details
- Besides, you have to upload the required documents and complete the IPV process
- Once filled, you can submit the application form
Motilal Oswal:
Motilal Oswal doesn't charge any fee for account opening but charges ₹199 from the second year onward as AMC. Here are the steps to follow to open a Motilal Oswal:
- To begin, you must visit the official website of Motilal Oswal and click on the option, Open Demat Account from the top
- Next, you have to fill in the Demat account application form
- After that, you have to enter your mobile number and complete mobile OTP verification
- In this step, you will need to provide details such as date of birth, email address, PAN, and bank account number
- Next, you will need to complete the IPV process
- Lastly, you have to E-Sign your Application form through Aadhaar OTP verification and submit
mStock:
mStock charges an AMC of ₹120, but you can enjoy ₹0 AMC for a lifetime by paying a one-time fee of ₹999 during account opening. You can open a Demat account with mStock by following these steps:
- To begin, you must visit mStock's official website and enter your mobile number
- Next, you have to complete the mobile OTP verification
- After that, you need to enter essential details for KYC, such as name, address, date of birth, PAN, and Aadhaar card number
- Besides, you have to upload the soft copies of your documents
- You may also use DigiLocker to share digital copies of your documents with the broker
- Next, you have to link your Bank account with your mStock account
- After that, you can choose your plan and make the one-time payment
- Lastly, you will need to complete IPV, E-Sign your Application, and submit
5paisa:
5paisa allows you to open a Demat account for free. However, the broker charges an AMC of ₹300. You can open a Demat account with 5paisa by following these steps:
- First, you need to visit 5paisa's official website, or you may download the 5paisa app
- Next, you have to enter your mobile number and click on Open account
- After that, you must complete the mobile OTP verification
- In the next step, you must enter your Email address and get it verified using the email verification link
- In this step, you have to enter details of your PAN card number DOB and click on Proceed
- Next, you have to complete the E-KYC process
- Besides uploading soft copies of required documents, you will have to upload a selfie in real time
- In the last step, you have to E-Sign your application form and submit
Sharekhan:
Sharekhan doesn't charge you anything for account opening. However, the broker charges an AMC of ₹400 from the second year onward. Here are the steps you need to follow to open an account with Sharekhan:
- To begin, you can go to Sharekhan's official website and click on Open Demat Account
- Next, you have to enter your mobile number and click on Start
- After that, you must complete the mobile OTP verification
- In this step, you will need to enter your name, city, and email address
- Besides, you have to enter some basic personal details
- Once done with this, you have to upload your PAN card, Aadhaar card and Cancelled cheque for the KYC process
- You will also need to upload a real-time selfie of yours
- In the last step, you have to E-Sign your application form and submit
Conclusion:
I opened my first Demat account offline. Opening a Demat account has become way more straightforward and faster than before since you can do it online. I have walked you through the Demat account opening process for various brokers. Besides, I have explained how to open NRI Demat accounts and Demat accounts for minors.
Opening a Demat account is the same for all brokers. Only the steps differ a bit, as seen in this article. I am sure you have gained a decent understanding of how to open a Demat account online after reading this article.